Originally Posted by
89Pistons
The two paragraphs titled "Those Affected by the Lower PRAP Cap are Overstated" in that rebuttal letter were written the way it was to make the memebership look at the cap as if they are all 59.5 years or older. That section of the letter is misleading you on purpose. They say "overstated" while purposely understating. Only folks over 59.5 can move their MBCBP to the PRAP, so a PRAP cap doesn't affect them as much. And they want you to believe it doesn't affect those under 59.5 (80%+ of our pilot group).
This LOA creates a divide. Have and have nots......again. The letter is attempting to mislead our pilot group. When this LOA was written they could have pretty acurately predicted what the vote would be based on memebrship demographics. They knew they'd have to divert your focus away from the cap in order to have a chance to get this thing passed.
The 59.5 thing is an IRS limit that applies to all MBCBPs (even Deltas). It’s also the same age that you can start withdrawing from your 401 K if you’re retired. Does a 401K create have’s and have nots? I don’t understand why people think it’s earth shattering and unfair to have a slightly more conservative investment mix in one of their accounts. Make your PRAP more aggressive problem solved. You will be able to shelter far more dollars in tax advantaged vehicles with this plan (or the same amount if you are one of the pilots dead set against contributing to their own 401K). You can get 10’s of thousands of more dollars in tax advantaged accounts with this TA.
Unless you are Mr Real Estate guy that needs money outside of retirement accounts this is a huge win for everyone (I’m in my mid 40’s).